MIDDLEBURY, Conn. (Oct. 19) — Chemtura Corp. has decided to rescind the rubber chemicals and EPDM portions of the settlement agreement announced last January to settle litigation for alleged price-fixing.
Some of the larger potential claimants opted out of the agreement, which persuaded Chemtura to seek direct settlements with them while attempting to deal with other claimants through the agreement, according to a Chemtura spokeswoman.
"We haven´t changed the reserves we´ve set aside, but we´re going to try to come to agreements taking a different path," she said.
In January 2005, Crompton Corp. — which merged with Great Lakes Chemical Corp. this summer to become Chemtura — set aside $97 million under a global price-fixing settlement agreement. This included $62 million for rubber chemicals, $30 million for EPDM and $5 million for nitrile rubber.
The federal district courts involved have already approved the nitrile portion of the agreement, the spokeswoman said.